PERTH (miningweekly.com) – The shareholders of lithium producer Tianqi Lithium Corporation have approved a A$1.9-billion joint venture (JV) agreement with ASX-listed Independence Group (IGO).

IGO on Friday told shareholders that some 99.97% of Tianqi’s shareholders present at its January 5 meeting had voted in favour of the transaction.

“The resolution vote of support which Tianqi has received from its shareholders further validates the value creation from this transaction for the shareholders of both companies,” said IGO MD and CEO Peter Bradford.

“Tianqi and IGO continue to progress the completion workstreams and we will provide further updates to the market as the remaining conditions precedent required to complete the transaction are progressed.”

Under the terms of the agreement struck last year, IGO will acquire a 49% interest in Tianqi Lithium Energy Australia through a share subscription, giving the company a 24.99% interest in the Greenbushes lithium mining and processing operation, and a 49% interest in the Kwinana plant, both in Western Australia.

The Greenbushes mine, some 250 km south of Perth, produced some 764 000 t of lithium concentrates in 2019, and is slated to produce between 510 000 t and 525 000 t of lithium concentrates for the 2020 year, while 2021 production is expected to reach between 850 000 t and 900 000 t.

The project currently has an operating life of some 20 years, with the potential to extend the mine life from the nearby Kapanga deposit, which is currently being evaluated.

US major Albemarle currently holds a 49% interest in the Greenbushes JV.

Meanwhile, construction of the first train at the Kwinana lithium hydroxide plant is complete, and the 24 000 t/y train will be ramped up by the fourth quarter of 2022.

The second train, delivering an additional 24 000 t/y of lithium hydroxide capacity, is some 20% to 30% complete, and commissioning is expected in 2024, with some $190-million of capital expenditure still remaining.